a) The economy of Faraway country contains 4,000 notes of RM1. i. What is the quantity of the money if Faraway

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answerhappygod
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a) The economy of Faraway country contains 4,000 notes of RM1. i. What is the quantity of the money if Faraway

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a) The economy of Faraway countrycontains 4,000 notes of RM1.
i. What is thequantity of the money if Faraway citizen hold all money?
ii. What isthe quantity of money if Faraway citizen hold all moneyas current account deposits and banks maintain 100 percentreserves?
iii. What isthe quantity of money if Faraway citizen hold equal amounts ofcurrency and current account deposits and banks maintain 100percent reserves?
iv. What isthe quantity of money if Faraway citizen hold all money as currentaccount deposits and banks maintain a reserve ratio of 10percent?
v. If Farawaycitizen hold equal amounts of currency and current account depositsand banks maintain a reserve ratio of 10 percent, what is thequantity of money?
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